2025-08-08 Sing Pao's Column《真金白銀》(English translation) Rate Cut Expectations Rise, Gold Holds Steady Near Highs

Rate Cut Expectations Rise, Gold Holds Steady Near Highs

Gold prices edged lower on Wednesday (August 6), ending a four-day winning streak. Although weak U.S. employment and services data bolstered expectations that the Federal Reserve may begin cutting rates in September—supporting overall market sentiment—the U.S. dollar rebounded modestly, capping gold’s upside. Investors are now closely watching for President Trump’s upcoming nomination of the next Fed Chair, a decision that could significantly influence future monetary policy expectations.

Meanwhile, the World Gold Council (WGC) reported that global central banks purchased a net 123 tonnes of gold in the first half of 2025. While slightly lower than the same period in 2024, demand remains robust, and continued steady central bank buying provides solid medium- to long-term support for gold.

From a technical perspective, the daily chart shows buying support around the 20-day Simple Moving Average (SMA), currently near USD 3,362. The 100-day and 200-day SMAs maintain upward slopes, indicating a broadly bullish long-term trend. However, momentum indicators remain directionless within positive territory. If gold fails to stay above USD 3,385, it may continue trading sideways in a consolidation phase. Initial support lies at USD 3,356, followed by USD 3,322 and the key psychological level at USD 3,300. A further breakdown could lead to a retest of the one-month low near USD 3,269.

Silver is trading steadily near USD 38.00, buoyed by concerns that the Trump administration may impose new tariffs on semiconductor, chip, and pharmaceutical sectors—raising demand for silver as an industrial metal. Technically, silver remains above its 20-day SMA, currently at USD 37.65. The 14-day Relative Strength Index (RSI) is hovering around 50, indicating a lack of strong bullish momentum. A break below the 50-day EMA at USD 36.71 would weaken short- and medium-term momentum and expose the late-June low of USD 35.28.

In the cryptocurrency space, Bitcoin (BTC) rebounded to USD 115,000, yet U.S.-listed spot ETFs have recorded net outflows for four consecutive days—signaling a growing divergence in investor sentiment. These outflows began shortly after last week’s nonfarm payrolls report. In contrast, Ethereum (ETH) ETFs have seen renewed inflows, suggesting rising investor confidence in ETH.

From both a technical and fundamental perspective, market interest in the Ethereum ecosystem is resurging, particularly in areas such as stablecoins, real-world asset tokenization (RWA), and institutional blockchain adoption—all of which are core strengths of Ethereum. With over 50% of global stablecoin supply circulating on the Ethereum network and consistently high liquidity, Ethereum is well-positioned to attract new projects and capital inflows in the months ahead. Disclaimer:

The content of this column is for informational purposes only and does not constitute investment advice or an offer to buy or sell any financial products. Investing involves risks. Readers should carefully evaluate their own circumstances and seek independent professional advice before making any investment.